[teraMember@teraJoin Date: 2006Post Count: 9]

May 5, 2007 - 4:44 pm

Hi all,

I and my partner are on the business of renovating and re-selling. We agree with all that LA aussie says.

We are lucky that we already have the leverage of two full paid properties (rented out, so also giving an income)

The way we work is by saving as much money of the profits we make with each property sold, after taxes, etc., When we have enough money saved, about 20% of the value of another property we we use it  as deposit for another lo doc to buy it.

We only buy units, say two bedroom ones. Never houses. Units are cheaper to refurbish and quicker to sell, in particular if you can get them cheap and in a good area.

We average about one renovation/sale every four month and don´t complain.

Our aim is to increase the quantity of properties to renovate/sale each year and at the same time  to progressively keep one or other to be rented out for increased capital gains/equity/compounding.

We don´t mind paying lots of taxes for it means that we also make good money.

Cheers,

Tera

[teraMember@teraJoin Date: 2006Post Count: 9]

May 5, 2007 - 4:08 pm

Hi everybody,

I always lay ceramic tiles/mosaics on the damaged, wear out kitchen bench tops of the units I renovate and re-sell. To me is the best solution ever. Easy to lay, shining, strong, durable, and cheap.

Cheers,

Tera

[teraMember@teraJoin Date: 2006Post Count: 9]

May 5, 2007 - 3:53 pm

Hi boshy,

You are lucky if you only owe $105.000 that means that you have an equity of $172.000 in your home

If you don´t know it this, it  works like this: $320.000 – $105.000 = $215.000 x 80% = $172.000 which is the money most banks will lend you for a loc doc investment loan.

Please read about loc docs to find out all relevant information. You don´t need to show income paperwork to get a loc doc loan aproved, yet you need, of course, to be honest and realistic and to have  the necessary continuous founds/money every month to repay the lender. If you think you will not be able to come out with the money for repayments forget about the loc doc loan.

I work with my bank. Only one loc doc with them for every property I buy.

I don´t use a solicitor for the properties purchases, only a conveyancer and all goes well.

If I can be of more help, do not hesitate to ask me,

Cheers,

Tera

[teraMember@teraJoin Date: 2006Post Count: 9]

May 5, 2007 - 3:20 pm

Hi marg,

A little bit late, really sorry,  but thanks so much for the most useful enlightment.

Cheers,

Tera

[teraMember@teraJoin Date: 2006Post Count: 9]

April 11, 2007 - 11:31 am

Damian,

I think that you should start small. I will forget about starting by buying a house.  i will start buying a small unit or flat in a good area if possible. Save the  20% needed for a loc doc loan and start from there. You will have plenty time later to increase your savings and buy greater things. Don´t forget as well that you don´t need to rent out every property you buy. Some times to fix the property  up a little and resell it for a profic is fantastic.  A combination of both worlds is my moto and I am laughing my way to the bank.
Best of luck,
Tera

[teraMember@teraJoin Date: 2006Post Count: 9]

December 22, 2006 - 3:49 pm

Hi artytina68,

I and my partner are in the business or renovating and selling.

If the kitchen counters are really bad we always cover them with nice shine ceramic tiles. Not large ones, but the small kind of mosaics.

Even the tops, fill the gaps, sand them and lay the tiles. It is economic, practical and it looks terrific.

Go for contrast with the cabinet doors.

You will be surprised as to how great all will look when finished.

Hope to have been able to help,

Good renovating!
[headphone]
chears,
Tera

[teraMember@teraJoin Date: 2006Post Count: 9]

December 4, 2006 - 4:23 pm

Hi marg4109, terryw,

Thank you so much for having taken the trauble to give me so much useful advise.

There are a couple of things that I don´t fully understand, perhaps is because I may have not explained the situation fully or clearly.

First, I can takeover 100% of the mortgage (loan?), there is no problem there.

On the question of capital gains: why is considered that I am paying him 50%? , actually no one of us has paid anything, only a couple of loan repayments, and I am only going to pay him in cash, half of the profits that we arrive at (in paper) of an imaginary amount we consider the unit could have been sold for after finishing with the refurbishings.

e.g., Unit bought for 170k, after refurbishings is worth 200K, but we could sell maybe for more, say, for 210K. difference= 40K, profit each= 20K

I pay 20K to him in cash, and he signs over the property, loan, back to my name.

By the way, I am going to the bank and solicitor soon about the deal, but I would really like to go prepare with some knowledge about it. thats why I really appreciate further ideas about the matter.

Thanks so much again,
Cheers,
Tera[strum]

[teraMember@teraJoin Date: 2006Post Count: 9]

December 2, 2006 - 7:54 pm

Hi all,

I am new here. Could you kindly let me know to what you refer to: PPR, PPOR and FHOG?

Thank you so much (I am new and learning)

Cheers,
Tera[blink]